SMM10, March 3: today, the official website of Hydro (Norsk Hydro), Norway, announced that due to the red mud yard problem, Hydro will shut down the remaining 50 per cent production capacity of the Alunorte alumina plant in Brazil, with an annual capacity of about 3.2 million tons. The news boosted the price of Len aluminum sharply higher. As of 21:39 on Oct. 3, LME three-month aluminum rose 3.51% to $2183 a tonne, after hitting $2194 a tonne during the day.
On February 27, 2018, Norwegian company Hydro said that a Brazilian regulator had asked the company to halve the capacity of its Alunorte alumina smelter in Brazil, with a total capacity of 6.3 million tons per year at the Alunorte alumina plant. Since March 1, Alunorte has been forced to operate at 50 per cent of capacity under orders from SEMAS and the court system. As a result, production at Paragominas bauxite and Albras aluminum plants has also been reduced by 50 per cent.
The logic of the rise in alumina prices in the early days:
Hydro's production cuts have exacerbated the shortage of overseas alumina supplies, with a monthly shortage of less than 300000 tons from January to February 2018. After Hydro limited production, the overseas shortage reached more than 450000 tons per month. As the foreign shortage continues, China's alumina has changed from net imports to net exports since April. Thus pushing up the price of alumina at home and abroad.
As a result, it can be seen that Hydro's production reduction is the fundamental reason for leading the rise in alumina prices at home and abroad. If the remaining 50% of the production capacity of Alunorte alumina plant is closed again, the shortage of alumina in foreign countries will be aggravated, and the price of alumina will continue to be supported.
Will the alumina market continue to be in short supply in 2019, will the cost of the aluminum market support the aluminum price, and where will the aluminum price go? Please pay attention to the "2018 China Nonferrous Metals Annual meeting and 2019 (SMM) Metal Price Forecast Conference" held by Shanghai Nonferrous Metals Network in Shanghai on October 19, at which there will be industry bigwigs, well-known corporate executives and senior SMM aluminum analysts. For everyone to see the sun, a detailed explanation of the copper market. At that time, more than 1000 elites and institutions in the industry will gather together, and there will be more than 10 well-known media reports at home and abroad. An industry feast is coming, we are waiting for your arrival!
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